Rafizi acknowledges that nuclear energy is a viable option

Kuala Lumpur – According to Economy Minister Rafizi Ramli, the 13th Malaysia Plan should contain nuclear energy to reach net zero by 2050.

“I can mention openly now, nuclear is on the table – because without nuclear and if we were to miss one or two (options), its quite difficult for Malaysia to achieve net zero by 2050,” he said yesterday during an industry interaction session at the National OGSE Blueprint Forum 2024. He claimed that the National Energy Council and Cabinet had approved the use of nuclear energy as a source of energy.

“The Energy Transition and Water Transformation Ministry (Petra) and the Science, Technology, and Innovation Ministry (Mosti) are now responsible for building the framework of laws and regulations,” Rafizi stated.

Nuclear energy is cleaner and more sustainable than other energy sources, he said.

Nuclear technology is distinct from previous ones, which require a lot of capacity. The smaller, safer, and cheaper small modular reactor (SMR) technology is now available. Technology now available globally, the government has actually decided that we will investigate nuclear energy in Malaysia,” he stated.

A “mini” nuclear power station, SMR is compact, safer, and adaptable, and can be easily constructed, transported, and scaled to deliver reliable energy in diverse areas.

Rafizi said nuclear energy is cheaper to operate since it doesn’t depend on fuel for life. He claimed the Energy Commission will regulate nuclear energy, like the energy production industry.

“We must meet a long list of international compliance before we can go nuclear.

“I think the ‘nitty-and-gritty’ of how the power sector will participate in nuclear will be decided and regulated most likely by the Energy Commission,” he said.

Rafizi also commented on CIMB Group Holdings Bhd’s plan to stop financing new upstream oil fields licensed for development after 2021 on January 1, 2025, to meet its decarbonisation target. The government does not influence private banks like CIMB, he said.

Malaysia’s oil and gas industry is strategic. Private banks make their own decisions, but the government must ensure that there is enough funding, whether from the private sector or government financial institutions.

“For the oil and gas sector, I will sit down and discuss with the banks to get information on how they want to deal with the challenging demand,” he added. While enterprises have to establish their green credentials, the government knows it must balance the choice with building the industry to maintain and grow gas supply.

“The Economy Ministry is responsible for ensuring that the oil and gas industry, the country’s main industry, remains intact and that the ecosystem, including the financing ecosystem, supports it,” Rafizi said.